Tax revenues from casino sector up 23 percent

Casino industry, photo from Phnom Penh Post

The Ministry of Economy and Finance reported that collecting tax revenues from casino industry increased 23 percent but casino owners felt concerned that the industry is facing challenges of shut-down and bankruptcy because of the decrease of clients.

The number of tax revenue from 20 Cambodian casinos contributed US$16 million to state coffers in 2010, up from US$13 million the year previous, reported the Post.

Chea Peng Chheang, Secretary of State for Finance Ministry, quoted by the Post as saying that the increase was due largely to better tax collection measure put in place by the ministry.

“We hope revenues will continue to increase in 2011, because investors in the sector are gaining more experience in making profits to pay for their tax obligations, and our tax officers are using better methods for tax collection,” he said.

Son Chhay, opposition lawmaker, said that many casinos have obtained licences but do not keep accurate accounting records to show revenues, leading to loses for tax collectors.

“The government collects more tax revenue from casino entertainment, but it is revenue from registering for the licence, not from taxes on profit,” he said.